Security trust acquisition or surrender exemption (s. 121) toolkit

This toolkit brings together everything you need to know about self assessing trust acquisitions or surrenders for security trusts.

Under section 121 of the Duties Act 2001 the acquisition or surrender of an interest in a security trust is exempt from transfer duty in commercial arrangements where:

  • the trust holds the securities and typically operates as a lender
  • financiers participate in the trust rather than each holding their own security.

The exemption applies to transactions involving security trusts where:

  • a member joins or exits the security trust as a beneficiary, or their interest varies
  • the dutiable property of the trust comprises only existing rights of the holder of a mortgage, charge, bill of sale or other security over dutiable property in Queensland
  • the trustee holds the rights for the benefit of the beneficiaries of the trust who have provided, or will provide, funds to the trust.

The exemption is not concerned with trust acquisitions or trust surrenders of mortgage-backed securities or other securitisation schemes.

As a registered self assessor, if you determine this exemption will apply to a transaction, you must assess it in OSRconnect.

Assessing a security trust acquisition or surrender exemption

Use the section 121 security trusts interactive help to determine if you should apply this exemption to a transaction.

You can also see our step-by-step procedure for applying this exemption in OSRconnect.

Read our endorsing examples if you are unsure how to stamp the documents for this exemption.

Records you need to keep

For this type of transaction, you must keep:

Find out more about your record-keeping obligations.

Also consider...

Contact

Office of State Revenue
For transfer duty self assessment queries:

For queries on payroll tax, land tax and royalties:

  • call 1300 300 734 (Australia) or +61 7 3179 2500 (overseas)
  • send an email using our online enquiry form.